By P.J. Huffstutter and Leah Douglas CHICAGO/WASHINGTON (Reuters) – Democrats in the U.S. Senate have asked the Department of Agriculture to explain why billionaire Elon Musk’s Department of Government Efficiency must approve certain government farm loans and loan guarantees before they are issued, according to a copy of a letter seen by Reuters. The lawmakers […]
Politics
US senators urge USDA to explain DOGE review of farm loans
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By P.J. Huffstutter and Leah Douglas
CHICAGO/WASHINGTON (Reuters) – Democrats in the U.S. Senate have asked the Department of Agriculture to explain why billionaire Elon Musk’s Department of Government Efficiency must approve certain government farm loans and loan guarantees before they are issued, according to a copy of a letter seen by Reuters.
The lawmakers also told USDA they wanted details about how such reviews are being conducted and whether DOGE will be vetting other USDA farm assistance programs, according to the letter.
Farmers rely heavily on loans to pay for operational expenses including seeds, fertilizers and pesticides, or to buy land. The USDA’s Farm Service Agency (FSA) typically offers loans to farmers who have trouble accessing credit through traditional lending institutions.
The letter, led by U.S. Sen. Amy Klobuchar, was sent late Tuesday to Agriculture Secretary Brooke Rollins, according to an aide. It was signed by 16 senators, including Ron Wyden, Adam Schiff and others.
The letter comes after Reuters reported on an April 29 memo outlining policy changes related to USDA FSA farm loan programs. According to the memo, the new policy requires that farm loans and loan guarantees over $500,000 must be reviewed and cleared by the agency’s chief financial officer and DOGE employees.
The same applies for loans and guarantees of any size issued to so-called “formal entities”, such as a farm business limited liability corporation. The policy change is in compliance with an executive order on government cost efficiency, according to the memo.
“Because most farming operations are structured as some type of entity, this requirement could impact a large number of loans and loan guarantees,” according to the letter sent to Rollins on Tuesday.
The lawmakers said that in addition to raising privacy concerns, the change could cause financial uncertainty and delays for qualified borrowers.
USDA officials could not immediately be reached for comment late Tuesday. The agency previously told Reuters such reviews do not cause undue delay and that most direct aid to individuals is exempt from the process.
Klobuchar is the top Democrat on the Senate Agriculture Committee, and Schiff is also a committee member. Wyden is the top Democrat on the Senate Finance Committee.
(Reporting By P.J. Huffstutter in Chicago and Leah Douglas in Washington; Editing by Stephen Coates)